Engineering & Mining Journal

AUG 2018

Engineering and Mining Journal - Whether the market is copper, gold, nickel, iron ore, lead/zinc, PGM, diamonds or other commodities, E&MJ takes the lead in projecting trends, following development and reporting on the most efficient operating pr

Issue link: https://emj.epubxp.com/i/1014254

Contents of this Issue

Navigation

Page 50 of 107

MINERAL ECONOMICS AUGUST 2018 • E&MJ 49 www.e-mj.com The MCI-W results confirm that mining is indeed the backbone of several nations' economies. In some nations, mining con- tributes a dominant share to the national wealth with more than 50% of exports and around 10% to 20% of GDP. Many of these countries are low- and middle-in- come economies. The distinction between different regions is shown graphically in Figure 1, the black areas show the high- est levels of dependence. Regions where mining makes a particularly high contri- bution are western, southern and central Africa, Oceania, central Asia, and Latin America. Almost all countries have some, often small scale, mining activity produc- ing, for example coal and aggregates for domestic use. These mineral products are most often not exported as their low value does not allow transport over any longer distances and hence the combined contri- bution by production and exports is small. MCI-W Rankings In the MCI-W, based on the latest avail- able data for 2016, the Democratic Re- public of Congo (DRC) is ranked as the country with the largest contribution of mining to its economy (See Table 1). Min- eral exports constitute 86% of its total ex- ports and the DRC is ranked as the second most important country in relation to min- eral export contribution. Mineral produc- tion value at the mine stage was $6.8 bil- lion in 2016 and the mineral production value was 12% of GDP (on this indicator the DRC is ranked as No. 2). Exploration expenditure was $143 million in 2016, 2% of production value, and ranked 37th globally. Mineral rents constituted 13% of GDP and DRC is ranked at No. 6 for 2016. These four variables give the com- posite score of 93 out of 100 in the in- dex for DRC. The top 10 countries in the 2016 MCI-W ranking in descending order were the DRC, Burkina Faso, Mali, Papua New Guinea, Eritrea, Namibia, Maurita- nia, Suriname, Peru and Liberia. Of the top 50 countries in the 2016 MCI-W, there were only three high-income economies (HIE), but 17 upper-middle income economies (UMIE), 16 lower-mid- dle income economies (LMIE) and 14 low-income economies (LIE). See Table 2. While there were two HIE's, Chile and Australia, among the 20 countries with Country Ranking MCI-W score Congo, Dem. Rep. 0 1 93.0 Burkina Faso 0 2 92.9 Mali 0 3 91.6 Papua New Guinea 0 4 91.1 Eritrea 0 5 90.3 Namibia 0 6 90.1 Mauritania 0 7 89.5 Suriname 0 8 89.3 Peru 0 9 88.3 Liberia 10 88.2 Botswana 11 88.2 Chile 12 87.8 Zambia 13 87.3 Guyana 14 87.2 Sierra Leone 15 87.1 Mongolia 16 86.0 Australia 17 84.6 Guinea 18 84.3 Tanzania 19 83.4 Kyrgyz Republic 20 83.2 Country Ranking % classification HIE 0 3 00 6 UMIE 17 0 34 LMIE 16 0 32 LIE 14 0 28 Total 50 100 Table 1—Top 20 MCI-W scores (2016). Table 2—MCI-W top 50 by country classification (2016). Figure 2—MCI-W top 20 countries (circles are proportional to value of mine production).

Articles in this issue

Links on this page

Archives of this issue

view archives of Engineering & Mining Journal - AUG 2018